Who’s Going to Spot It?
Monday, June 9th, 2008An interesting post on Techcrunch today tells of a company that’s about to go public, allegedly relying on an internet scam for most of its revenue.
The final paragraph points out that the scam appears to have been overlooked during the due diligence done so far.
The problem is that traditional legal and financial due diligence aren’t set up to spot problems like this.
Would proper technology due diligence have uncovered the issue?
The answer should be yes. A good technical due diligence will examine how technology is being used to contribute revenue.
Have the due diligence teams involved in this deal been a little too reliant on the soundbite method?
